The Australian government has placed a prominent Islamic group fighting the regime of Bashar al-Assad in Syria on its terrorist blacklist.

Foreign Minister Bob Carr has announced Australia will list the Al-Nusrah Front as a terrorist organisation to try to starve the group of funding and support.

Unknown before the uprising, the Al-Nusrah Front since mid-2012 has become the spearhead of the insurgency ahead of the mainstream rebel Free Syrian Army.

The Islamist jihadist faction has since captured key army bases and is believed to have set up a religious council to administer affairs in rebel-controlled areas in eastern Syria.

Senator Carr said with 5000 fighters in Syria, the Al-Nusrah Front had a history of suicide attacks and bombings.

"I'm advised Al-Nusrah is active against the Syrian military but also against civilian targets," he said in a statement.

"There is no place for violent extremist groups such as Al-Nusrah in Syria or elsewhere."

He said there was evidence that Al-Nusrah had direct links with al-Qaeda in Iraq, which supplies it with weapons, recruits and equipment.

The United States placed the Al-Nusrah Front on its terror blacklist in December, citing links to al-Qaeda.

The listing means anyone in Australia who makes funds or assets available to the group could face up to 10 years in jail.

Assets known to be owned or controlled by Al-Nusrah must be frozen and reported immediately to the Department of Foreign Affairs and Trade.